Michael McNamara (Clare, Independent)
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354. To ask the Minister for Employment Affairs and Social Protection the number of recipients of the State pension (contributory) whose pension entitlement is reduced as a result of the pension rate band changes introduced in 2012; the proportion of contributory pension recipients so affected; and if she will make a statement on the matter. [42976/20]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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New rate bands for State pension (contributory) were introduced from 1st September 2012 to allow for a wider graduation of yearly average bands and corresponding pension rates. Consequently, the rate of pension payment is more closely related to the paid or credited social insurance contribution record a person holds over their working lives.

The maximum pension rate band, for those with a yearly average of 48 contributions or over, remained unchanged, as did the rate payable to applicants with a yearly average of between 40 and 47 contributions. The rate band changes affected only those who qualified for State pension (contributory) after 1st September 2012, and only those who had an average of between 10 and 39 contributions per year.

In January 2018, the Government announced that pensioners, born on or after 1st September 1946 and affected by the 2012 changes in rate bands, could have their State pension (contributory) entitlement calculated under an interim Total Contributions Approach (TCA). The TCA also provided for up to 20 years of HomeCaring Periods in the calculation of pension entitlement for those who took time out of the workplace for parenting children under age 12 or individuals who needed increased levels of care.

Applicants for State pension (contributory) have their pension entitlement assessed under both the yearly average calculation method and the TCA and are awarded whichever pension rate is higher.

According to the records of my Department, there are currently 50,783 State pension (contributory) recipients whose pension entitlement has been calculated under the TCA: 37,586 females and 13,197 males.

This figure represents some 11% of the total number of State pension (contributory) recipients, which is 448,281 at end-November 2020.

I hope this clarifies the position for the Deputy.